RUSSIA: Sinopec completes acquisition of minority stake in Sibur

China's Sinopec and Russia's Sibur on 17 Dec. 2015 announced the successful completion of Sinopec's acquisition of a 10% interest in Sibur.

 

Russian Prime Minister Dmitry Medvedev, during a recent meeting of the Commission on Monitoring Foreign Investment, said the government had approved Sinopec's acquisition of up to a 20% stake in Sibur.

He explained the transaction involves Sinopec acquiring a 10% interest in Sibur for about USD1.34-billion, with the option to purchase another 10% within three years.

Leonid Mikhelson, chairman of Sibur, earlier said that having Sinopec as a shareholder would "reinforce Sibur's expertise to maximize the efficiency of new large-scale projects and raise the company to a new level."

The two companies will explore ways to broaden the scope of their collaboration. As a next step, they are considering the participation of Sinopec in the Amur Gas Chemical Complex as a strategic partner with Sibur. The project includes a 49-billion cu m/y gas processing facility and the production of 2.4-million t/y of ethylene and its derivatives.

Source: Weekly “PetroChemical News”, Durham, NC, USA; 28 Dec 2015
(Syed Rashid Ali, Karachi, Pakistan)